Page 13 - GEORptNov20

Overall, the US State Department assesses Georgia as “a small but open market,” that has “made sweeping economic reforms since 1991 that have produced a relatively well-functioning and stable market economy”.
The document notes that Georgia ranks high in the 2020 World Bank Ease of Doing Business index and in the Heritage Foundation’s 2020 Economic Freedom Index.
It says: “Georgia ranks seventh in the 2020 World Bank’s Ease of Doing Business index and twelfth in the Heritage Foundation’s 2020 Economic Freedom Index. Fiscal and monetary policy are focused on low deficits, low inflation, and a floating real exchange rate, although the latter has been affected by regional developments, including sanctions on Russia, and other external factors, such as a stronger dollar. Public debt and budget deficits remain under control. However, global challenges posed by COVID-19 and measures needed to mitigate the spread of the virus have placed significant pressure on the domestic currency and the local economy.”
3.0​ ​Macro Economy
Georgia - Main Macro Indicators 2015 2016 2017 2018 2019* Q1 2020* Q2 2020
GDP real growth (y/y, %)
3.0 2.6 4.8 4.8 5.1 2.2 -12.3
GDP per capita (at current prices), 4,012.6 4,062.1 4,358.5 4,722.0 4,763.5 1,017.1 961.2 USD
GDP per capita (at current prices), GEL
9,109.4 9,613.9 10,933.9 11,968.0 13,428.9 2,976.6 3,016.0
GDP at current prices, (USD bn)
14.9 15.1 16.2 17.6 17.7 3.8 3.6
GDP at current prices, (GEL bn)
33.9 35.8 40.8 44.6 50.0 11.1 11.2
GDP deflator (y/y, %)
5.8 2.6 8.5 4.4 6.6 6.1 6.3
Source: Geostat
3.1 ​Macroeconomic overview
Georgia’s GDP falls 5.3% y/y in August
Georgia’s GDP declined by 5.3% y/y in August, following the 5.5% y/y contraction seen in July and the double-digit plunge seen in Q2, according to estimates issued by statistics office Geostat.
Economy minister Natia Turnava expressed confidence that the economy was gradually getting back on its feet.
“These figures clearly show that the pace of economic decline has slowed. In August, the trend of economic recovery intensified and it is progressing rapidly. By the end of the year, the rate of decline will be half the European average, and next year will be a year of economic growth and economic recovery," Turnava said.
All the economic sectors except for mining and quarrying saw negative growth rates in August, Geostat said.
13​ GEORGIA Country Report ​November 2020 ​ ​www.intellinews.com